Textiles and leather Underperformance, but also potential for growth

The latest report from the Foreign Exchange Office on the textile industry 2024, analyzing the last two decades (2002/2022), continues to reveal its secrets. This methodical and meticulous investigation certainly supports the crucial role of the textile and apparel sector, but also shows that its recent trajectory is stumbling against persistent challenges. An in-depth look at the data and trends reveals a complex landscape, where apparel and accessories exports are a real engine of growth, but also a landscape where competition and internal obstacles present significant impediments. Exports of textile products, particularly cotton shirts, suits, and pants, have been some of the mainstays of the Moroccan economy. However, despite generally stable performance, Morocco’s market share in certain segments, such as knitted garments, is showing signs of stagnation or even slight decline. This trend raises questions about the need to adjust export strategies to maintain competitiveness on the global market.

Analysis of target markets also reveals some interesting dynamics. While Morocco’s market share in Africa increased until 2017 before declining, its share of the European market showed a downward trend over the period under review. These movements underline the importance of diversifying trade outlets to mitigate the risks associated with dependence on certain markets.
Despite these successes, the Moroccan textile industry faces major challenges. The predominance of subcontracting, low export diversification and concentration on low value-added products are all obstacles to be overcome. To remain competitive, the industry will have to invest in innovation, diversify its products and focus on higher value-added segments. The industry will also need to pay close attention to its performance and underperformance, both of which represent growth opportunities.
Over the 2012-2022 period, the number of active exporters has shown contrasting trends. After an increase between 2012 and 2014, from 917 to 949 operators, a decline in the number of companies active in export was noted from 2015 onwards. This decline is attributable to the tough competition encountered by the sector, particularly in the subcontracting component, provided by countries where labor costs are considerably low.

Radia LAHLOU